Solar Leasing Or Solar Loans?  Let's Figure This Out

Third-party owners, or TPOs, are companies that offer solar leases and this can be an easy way into solar for your home or business if you can't pay the up-front cost of owning a solar panel system on your own. Homeowners that contract TPO solar leases sign long-term lease agreements (anywhere from five or 10 to 20 years) and make monthly lease fees to the provider that typically amount to less than their current utility bills. At the end of the lease's term, homeowners can opt to purchase the system entirely, or the solar leasing company can rehabilitate and remove the system, reusing or recycling the components, or perhaps relocating the entire system at the added location.

TPO solar lease-installation companies insert several vital assumptions and contingencies into solar lease agreements, clauses or sections that can have a significant impact on the ultimate value, and return on investment, that goes to the lessee (the home or property owner).

Should I lease?  Should I loan? Financial Options
 
TPO solar leases also usually include what's known as price, or cost, escalators. Monthly TPO solar lease payments are keyed to forecast increases in the cost of local grid electricity and rise along with them – hence the term price escalators.

A TPO solar lease customer in some situations could wind up paying more over the 10- or 20-year term of a residential solar lease than they would have spent on a utility for electricity over the same period.

Moreover, TPO solar lease-installation companies retain control of the ITC, as well as any state or local solar energy subsidies or other incentives. In return, TPO solar lease-installation companies agree to operate, manage and remove home solar energy systems over a lease agreement term.

Solar Loans

They can also obtain full ownership of the ITC and any state or local incentives or subsidies. The homeowner is accountable for the maintenance of the system as they own it. Similar to TPO solar leases, solar loans with zero down payment are possible. A homeowner may be able to have a solar PV system installed and begin producing their own emissions-free electricity for free as a result. Of course, the price becomes apparent shortly after that, when they have to start making monthly loan payments.

Is "Free" Free?

We should denote out that other kinds of free solar panel or energy offers exist. The gist of the message is that you may be able to get solar panels for free if you're willing to do some investigation, and probably at least a fair amount of negotiating and physical legwork. More particularly, some websites recommend that those looking to obtain solar panels for free search for and consult with homeowners upgrading their solar PV systems to haul away their used solar panels for free. Another recommended option is taking a similar approach by offering to do the equivalent for solar energy installation companies.

Curious about solar hard costs vs. soft costs near you, and how that might affect your own solar panel pricing? We here at HahaSmart you will have a look at what we can offer you on the cost of solar panels and cost of solar installations. We will strive to find you the best prices available. Follow the solar experts. Try our price checker tool. It tells you how much solar power you need and how much you can save on your energy bills each month. Please visit our solar blog to find out more about the benefits of going solar.